Does a large foreigner buy UBS or CS? The question arises after the crash of the shares of the two Swiss multinationals. A UBS security was still 8.84 Swiss francs last night, a CS share closed at 8.55 Swiss francs.
The decay is dramatic. Since the beginning of 2020, in just 2 months, the UBS security has lost a fifth of its value, that of the CS a quarter. The SMI, the index of large companies, fell by 9 percent.
After yesterday’s Black Monday, UBS and CS show ratings that hardly anyone would have imagined recently. They were previously considered to be the major disappointments, with historically low ratings.
The whole UBS, number 1 of the
Financial center with 20,000 employees in Switzerland and around 70,000
worldwide, the world’s largest wealth manager
Customers: It just costs CHF 32 billion on the stock exchange.
JP Morgan earns that much as
largest US commercial bank in one year.
The CS with 17,000 employees at home and almost 50,000 around the world has even less value, it would have cost 21 billion at yesterday’s closing short.
–
With 1,500 billion private client assets under management, CS also has a proud share in global private banking.
Helvetien’s major financial institutions could
land on the shopping list for giants abroad. If there were one
Takeover of UBS or CS, all of the previous would in the
Shade.
A buyer would be UBS respectively
disassemble the CS. Global private banking would be under the
existing names continued. The Swiss area would too
well kept, but there would be a renovation.
All of the investment banking and trading would end up with the buyer. It would lower the positions without the outside world noticing much of it.
A takeover of CS or UBS by a foreign giant would be a super shock for the financial center. There would be thousands of unemployed at the two multinationals.
A sharp dismantling of the staff also threatens. The stock market crash has a direct impact on the client assets under management. These collapse, which reduces the banks’ income.
Custody and asset management fees are calculated as a percentage of clients’ portfolios.
Added to this are the still falling interest rates. The banks are threatening to lose the hitherto stable business with hypo interest rates.
They try to compensate for this with negative interest for the masses. The risk increases that retail customers withdraw their money in this case.
Depending on how it progresses, the leading banks in the Zurich financial center could cut four-digit jobs.
similar posts
–
